Small businesses scheme

If you run a small business, you may be eligible to participate in the small businesses scheme (kleineondernemersregeling), as part of which you will pay less turnover tax (VAT) to the Tax and Customs Administration (Belastingdienst). In some cases, you may not have to pay any VAT at all. You can also be exempt from the administrative obligations of the VAT system, which means that you will no longer have to file returns periodically.

Conditions

In order to be eligible for the small businesses scheme, you must satisfy conditions which include the following:

• your business must be registered in the Netherlands; this condition does not apply if you run a foreign business and only provide services in the Netherlands;
• you run a one-man business or your company is a joint venture involving natural persons, such as a partnership (maatschap) or a general partnership (vennootschap onder firma);
• after deduction of input tax (voorbelasting), you pay less than €1,883 on an annual basis in turnover tax (omzetbelasting).

In order to be eligible for exemption from the administrative obligations, you must satisfy the following condition:

• the amount to be paid must be less than €1,345 on an annual basis.

How to apply

You must apply the deduction to either your last return of the year or your first return of the following year. Submit an application for exemption from the administrative obligations of the VAT system in writing to the Dutch Tax and Customs Administration.